Though, many traders avail themselves of those Fibonacci retracements like

magical support or resistance regions, they are not. One should wholly accept

them together with the trading drill and triangle.

Fibonacci simplified

38.2% is nearly 40% 68.2% is roughly equal to 70% 78.6% is around 80% One may state 38% Fibonacci retracement is about 40% profit-taking and 78.6% is relatively 80% reduction to the most current highest price. Numerous bullish stocks or commodities with viable financials at 78.2%

price cut are oversold. On the other hand, the indicated which surge to 78.6%

Fibonacci retracement after an initial bearish price move are overbought if

fundamentals are weak or deteriorating. Nearly All hedge funds and additional

During an uptrend, 1/ price should be in a rising channel, 2/ price should breakout of a resistance, 3/ price must confirm the resistance as a support. One will also align the technical analysis with the financials.

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Title: How To Master The 38 2 Fibonacci retracement

Description: Learn and master how to trade the 38.2% Fibonacci

retracement with a greater success. Follow the correct steps to

identify the best 38.2% Fib level trade setup.

During a downtrend 1/ price ought to be in a declining channel, 2/ price must decline below a support level, 3/ the support must change into a resistance.

Band between 50% and 61.8% Fibonacci

Traders call it sweet spot zone because large trading pursuits often take

place in it. This swell in trading further signals the start of a new trend

if both fundamentals and market conditions are recovering or worsening conjointly.

After the motive wave, asset many times retraces into the sweet spot band.

Look At chart

United Technology Corp stock, monthly chart

After the bullish trend (1993-2008), a healthy profit taking (2008-2009)